Wco81 - I have the optical from my TivoHD direct into the Panorama. HDMI from the Tivo direct to the TV. I also have an AppleTV, and that HDMI goes right to the TV, too. But when I use the AppleTV, the Panorama gets the optical out...
I have had the Panorama for 2 years. Lots of $$ but well worth it. I use it exclusively. Never turn up the TV al all. The trick was getting it to work with my Harmony One. Especially changing audio inputs.
I used Monoprice for Cable and rack mounted termination panels. I bought a "real" punch down too, but I hated it. I used the cheap tool that came with the panels.
2 foot jumpers are less than $1. Not worth doing the work. Also...
I have one installed for about 2 months now.
Sounds great. Paired with a Panasonic V54.
Great soundstage. Only difficulty is passing high quality optical cables behind the mounting bracket.
Doing about 20-30 Leviton Zwave stuff. I'm about half way through. Easy to put in. Even putting it in bathrooms and hallways so that I can use dim settings at night. For controllers, I put them in the smarthome tabletop...